HomeMy WebLinkAboutIR 24-1867 (2)INFORMAL REPORT TO CITY COUNCIL MEMBERS
No. 24-1868
To the Mayor and Members of the City Council August 6, 2024
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SUBJECT: JULY 2024 — SALES TAX REVENUE UPDATE
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Sales tax revenue is 25% of the City's General Fund FY2024 revenue, making sales tax the second-largest
General Fund source of revenue following property tax. In addition, sales tax revenue represents the largest
revenue source in the Crime Control and Prevention District (CCPD) Fund. Because sales tax represents a
significant revenue source for the City and can sometimes be a volatile revenue stream, it is important for
the City to closely monitor and report on monthly sales tax receipts. Sales tax payments are allocated to
Fort Worth by the State of Texas two months in arrears. Sales tax receipts are recognized as collected with
an adjustment made in the final month of the fiscal year to align total fiscal year (October — September)
collections with the months of economic activity generating the revenue.
The Texas Comptroller's Office posted July 2024 (Fiscal Year 2024, Period 10) collection results on July 10,
2024. Actual receipts are dependent upon the timeliness and accuracy of sales tax payers' returns. Recent
years have witnessed significant swings to the economy and retail sales including legislative reform on
remitting sales tax to the state comptroller, effects of a historic winter storm, fluctuations in target interest
rates, and the effects of a global pandemic.
The FY2024 Adopted Budget for sales tax was estimated based on historical trends due to the potential
fluctuation in the revenue source. The city takes a conservative, yet realistic, approach to estimating sales
tax.
CITY OF FORT WORTH YTD BUDGET & NET COLLECTIONS COMPARISON
Adopted
Amended
Budget
YTD Budget to Actual
YTD Actual to
Budget
Budget
As of July
Adopted % As of July
Adopted %
CITY OF FORT WORTH
GENERAL FUND
$250,000,000
$250,000,000
$203,365,062
81.3% $194,405,258
77.8% U 95.6%
CCPD
$119,391,511
$119,391,511
$97,120,248
81.3% $93,151,708
78.0% 1'1 95.9%
Total
$369,391,511
$369,391,511
$300,485,310
$287,556,965
CITY OF FORT WORTH BUDGET COMPARISON — FY2024
Projected
Adopted
Amended
Fiscal Year
Variance to Adopted
Budget
Budget
Projections
($) (%)
CITY OF FORT WORTH
GENERAL FUND
$250,000,000
$250,000,000
$239,500,000
($10,500,000) -4.2%
1'1
CCPD
$119,391,511
$119,391,511
$114,000,000
($5,391,511) -4.5%
1'1
Total
$369,391,511
$369,391,511
$353,500,000
($15,891,511) -4.3%
1`I
'THE AMENDED BUDGET HAS NOT CHANGED FROM ADOPTED BUDGET FOR THE SALES TAX REVENUE
'STARTING IN MAY 2024 WE WILL UPDATE AND AMEND PROJECTIONS FORMALLY AFTER SECOND QUARTER.
• The FY2024 Adopted Budgets for General Fund and the CCPD Fund represent a 14.9% increase
over the FY2023 Adopted Budgets
• The FY2024 Fiscal Year projection is an increase of 2.8% over the FY2023 Actuals collected. We
collected a grand total of $343,878,798 in FY2023 for the General Fund and CCPD
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS
No. 24-1868
To the Mayor and Members of the City Council August 6, 2024
�aTa Page 2 of 4
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SUBJECT: JULY 2024 — SALES TAX REVENUE UPDATE
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• The FY2024 Fiscal Year -End grand total of General Fund and CCPD Fund collection is projected at
$353,500,000
COLLECTION DETAIL FOR CITY SALES TAX (FY2023 TO FY2024)
General Fund
July 23
July 24
Variance ($)
Variance (%)
Current Period Collections
$18,580,458
$18,525,402
($55,056)
(0.3%) 1�1
Other Collections
$580,563
$458,234
(122,329)
(21.1%)
Single Local Rate*
$199,900
$257,121
57,221
28.6%
Audit Adjustments
$224,817
$191,628
(33,189)
(14.8%)
Service Fee
($391,715)
($387,463)
4,252
1.1%
Retainage
($28,916)
($4,025)
24,891
86.1%
Net Collections
$19,165,107
$19,040,897
($124,210)
(0.6%) 1`I
CCPD Fund
July 23
July 24
Variance ($)
Variance (%)
Current Period Collections
$9,059,174
$9,057,851
($1,324)
(0.0%) 1'1
Other Collections
$287,260
$230,380
(56,881)
(19.8%)
Single Local Rate*
$97,718
$96,949
(769)
(0.8%)
Audit Adjustments
$130,308
$105,994
(24,313)
(18.7%)
Service Fee
($191,489)
($189,823)
1,666
0.9%
Retainage
($14,512)
($2,025)
12,487
86.0%
Net Collections
$9,368,458
$9,299,324
($69,133)
(0.7%)
*OTHER COLLECTIONS ARE PAYMENTS ATTRIBUTED TO NON -CURRENT COLLECTIONS INCLUDING PRIOR PERIOD, FUTURE PERIOD AND UNIDENTIFIED
COLLECTIONS. SINGLE LOCAL RATE IS COLLECTIONS FROM REMOTE SELLERS WHO HAVE OPTED TO UTILIZE THE STATES ALTERNATE SINGLE LOCAL USE RATE
OF 1.75%. THIS SINGLE LOCAL RATE CANNOT BE USED BY BUSINESSES LOCATED IN TEXAS. AUDIT ADJUSTMENTS FLUCTUATE BASED UPON RESULTS OF
TAXPAYER SALES TAX AUDITS CONDUCTED BY THE STATE OF TEXAS.
July collections are lower than the same month last year.
• The General Fund net sales tax collections as of July are 4.5% lower than the adopted budget and
0.6% lower than the same month last year
• The CCPD Fund net sales tax collections as of July are 2.3% lower than the adopted budget and
0.7% lower than the same month last year
ISSUED BY THE CITY MANAGER
FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS
No. 24-1868
To the Mayor and Members of the City Council August 6, 2024
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Page 3 of 4
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SUBJECT: JULY 2024 - SALES TAX REVENUE UPDATE
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The following chart indicates how FY2024 net sales tax collections in Fort Worth and other select cities in
the state compare to FY2023 collections for the same period.
CITIES COMPARISON - NET COLLECTIONS
FY2023 vs. FY2024
City
1st Quarter
2nd Quarter
3rd Quarter
July
YTD
ARLINGTON
5.9%
(0.6%)
3.7%
5.9%
3.3%
DALLAS
3.0%
1.8%
6.7%
0.2%
3.4%
GARLAND
34.6%
6.8%
9.6%
(4.5%)
14.6%
EL PASO
1.2%
0.2%
0.5%
(0.8%)
0.5%
IRVING
0.0%
(3.3%)
4.9%
7.3%
1.2%
MCKINNEY
5.2%
9.9%
8.9%
10.8%
8.3%
SAN ANTONIO
0.3%
2.5%
3.1 %
1.2%
1.9%
GRAND PRAIRIE
1.2%
(3.8%)
5.9%
(1.4%)
0.7%
PLANO
1.2%
2.1 %
9.8%
1.5%
4.0%
HOUSTON
1.5%
(1.6%)
(1.5%)
(2.2%)
(0.7%)
AUSTI N
(2.3%)
(0.1 %)
7.1 %
(0.1 %)
1.4%
FORT WORTH
(1.5%)
0.1 %
3.0%
(0.6%)
0.4%
FRISCO
(5.5%)
0.2%
5.3%
2.2%
0.0%
STATE TOTAL
2.1 %
0.4%
2.2%
0.4%
1.4%
Source: Allocation Payment Detail and Monthly All Fund Revenue Report, Texas Comptroller of Public Accounts
ISSUED BY THE CITY MANAGER
FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 24-1868
�aTa
To the Mayor and Members of the City Council
August 6, 2024Page 4 of 4
G ` 03-
SUBJEC
T: JULY 2024 — SALES TAX REVENUE UPDATE
Y673
Sales tax is collected on a variety of transactions besides the traditional retail industry, and it is
important to understand the various sources in order to anticipate any fluctuations. The following chart
indicates the top five industries' performance for sales tax over the past two years and current fiscal year
to date in Fort Worth.
200,000,000
180,000,000
160,000,000
140,000,000
120,000,000
100,000,000
80,000,000
60,000,000
40,000,000
20,000,000
TOP 5 PERFORMING INDUSTRIES
Oct 29-Sep 22 Oct 22-Sep 23 FY2024 YTD
Department Stores Other Noustore Retailers Limited Service Eating Places Building Materials Stores Electric Utilities
*Source: Zac Tax; current month data is sometimes unavailable at time of IR publication
If you have any questions, please contact Christianne Simmons, Chief Transformation Officer, FWLab, at
817-392-6222.
David Cooke
City Manager
ISSUED BY THE CITY MANAGER
FORT WORTH, TEXAS